For some, the American Dream of Homeownership has gone drastically awry. The days of anticipation of closing on that dream home seem long ago to them. Today, focus may be on getting food on the table and keeping the lights on. Maybe this is because of bad decisions made along the way, but more often it is because of job loss, reduced income, medical bills – situations beyond their control – and/or revolving debt accrued to keep payments up and cover budget gaps.
Along come the Making Home Affordable Programs and Hardest Hit Funds to help struggling homeowners hang on to their dream before it drifts away from them, becoming the inventory of their bank vs. the home they are raising their children in. Welcome to the world where chaos reins, where common sense and good business practice seem to be unknown concepts. This is the current world of loss mitigation. Where frustration can add to the financial strain, while you try to find out if you are eligible for these programs and actually get your loan modified or a forbearance agreement in place BEFORE your servicer initiates the foreclosure process and/or completes the forced sale of your home.
If you are the determined, fighting sort, you might successfully negotiate terms with your servicer on your own – with some grace/luck/whatever you like to call it. The vast majority of people don’t get here on their own, needing the help of ethical, competent professionals. Unfortunately, the help you are pointed to is at under-funded agencies who often are under-staffed and frequently unable to keep up with the needs in their communities. Since this housing crisis is viewed as short term, competent “for fee” businesses are few and far between, as making a viable business of this is tough outside of metropolitan areas and unlikely to be successful at this late juncture. Scammers jumped on the housing crisis bandwagon, popping up early on in the crisis like daffodils in spring but without the hope daffodils bring, making it tough to decipher if a “for fee” business is legitimate or not.
I’ve been in the trenches fighting this battle from the early days when the Making Home Affordable programs were first released in February 2009. Ongoing training and education are critical to success as a housing counselor, but as with many lessons I’ve encountered in my lifetime, hands on experience is invaluable. With a case load of 150% of what is recommended for a housing counselor, I find myself unable to help as many people as I’d like to in my community. So, time to help you help yourself. What seems to be an impossible goal is attainable! You will need to be persistent and focused, though.
Stay tuned for some steps I take and recommend daily to the homeowners I work with as a certified housing counselor here in Southern Oregon.
See you out there!
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